ebay

EBAYS STRATEGY IN CHINA-ACQUISITION OR ALLIANCE Q1.Critically gradation EBays choice of market entry strategy for chinaware, run both the advantages and disadvantages of its acquisition strategy. Ans 1.Background.The strategic alliance amongst EachNet and eBay was an historical decision based on chinawares unconquerable economic growth. Western interest in mainland chinawares internet sector was apparent owing to Chinas manufacturing led boom and gradual integration into the global employment community. EachNet has recruited 3.5 one million million registered users and was an ideal partner to further unify its leading(p) role in the countrys burgeoning e-commerce industry. Although the development of the Internet in China had skyrocketed, rail line orientated portals had had a difficult metre generating revenue. merely eBay had made success with its auction model in the join States and had been expanding abroad. In January eBay reported a fourth-quarte r net meshing of US$25.9 million and expected revenue for the first half(a) of 2002 to be betwixt US$490 and US$510 million. Advantages to ebay-EachNet The deal with EachNet was an principal(prenominal) step forward in eBays strategy to build a truly global marketplace. transnational expansion would be an important driver of ebays growth.

250 million strong emerging substance class would offer expectant potential. E-commerce revenue in China was expected to grow close to 12 fold to more(prenominal) than US$16 billion oer the next lead to four years. Statistics from the China National lucre Information concenter showed that Chinas Internet user! s had topped 33.7 million by the end of stretch forth year, up 49.8 per cent everyplace the same period run short year. Advantages of the acquisition. Executed in a two stage process- minority stake followed by acquisition would be a effective strategy succession testing waters in a new market. Founders of Eachnet were trillion Whitmans alums at Harvard- good in-person relationships EachNet had good business knowledge and strong domestic...If you want to spoil a wide-cut essay, order it on our website: BestEssayCheap.com

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